LegalizeFinance Act 2010
Part 1 — Charges, rates etc
Income tax
Charge, main rates, thresholds and allowances etc for 2010-11
1
- (1) Income tax is charged for the tax year 2010-11.
- (2) For that tax year—
- (a) the basic rate is 20%,
- (b) the higher rate is 40%, and
- (c) the additional rate is 50%.
- (3) The amounts specified in the following provisions of ITA 2007 are the same for the tax year 2010-11 as for the tax year 2009-10—
- (a) sections 10(5) and 12(3) (basic rate limit and starting rate limit for savings),
- (b) sections 35, 36(1), 37(1) and 38(1) (personal allowances and blind person's allowance),
- (c) sections 43, 45(3)(a) and (b) and 46(3)(a) and (b) (tax reductions for married couples and civil partners), and
- (d) sections 36(2), 37(2), 45(4) and 46(4) (adjusted net income limit).
Corporation tax
Charge and main rate for financial year 2011
2
- (1) Corporation tax is charged for the financial year 2011.
- (2) For that year the rate of corporation tax is—
- (a) 26% on profits of companies other than ring fence profits, and
- (b) 30% on ring fence profits of companies.
- (3) In subsection (2) “ring fence profits” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).
Rates of air passenger duty
3
- (1) For the financial year 2010 the small profits rate is—
- (a) 21% on profits of companies other than ring fence profits, and
- (b) 19% on ring fence profits of companies.
- (2) For the purposes of Part 3 of CTA 2010, for that year—
- (a) the standard fraction is 7/400ths, and
- (b) the ring fence fraction is 11/400ths.
- (3) In subsection (1) “ring fence profits” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).
Capital gains tax
Unauthorised unit trusts
4
- (1) In section 169N(3) of TCGA 1992 (limit on entrepreneurs' relief)—
- (a) for “£1 million” (in both places) substitute “ £2 million ”, and
- (b) in paragraph (b), after “total of” insert “ so much of ” and insert at the end “ as was subject to reduction under subsection (2) ”.
- (2) The amendments made by subsection (1) have effect in relation to qualifying business disposals occurring on or after 6 April 2010.
Capital allowances
Annual investment allowance
5
- (1) In section 51A(5) of CAA 2001 (entitlement to annual investment allowance: maximum allowance), for “£50,000” substitute “ £100,000 ”.
- (2) The amendment made by subsection (1) has effect in relation to expenditure incurred on or after the relevant date.
- (3) Subsections (4) and (5) apply in relation to a chargeable period (“the actual chargeable period”) which—
- (a) begins before the relevant date, and
- (b) ends on or after that date.
- (4) The maximum allowance under section 51A of CAA 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—
- (a) the period beginning with the first day of the chargeable period and ending with the day before the relevant date, and
- (b) the period beginning with the relevant date and ending with the last day of the chargeable period,
were treated as separate chargeable periods.
- (5) But, so far as concerns expenditure incurred before the relevant date, the maximum allowance under section 51A of that Act for the actual chargeable period is to be calculated as if the amendment made by subsection (1) had not been made.
- (6) In this section “the relevant date” means—
- (a) for corporation tax purposes, 1 April 2010, and
- (b) for income tax purposes, 6 April 2010.
Stamp duty land tax
Relief for first-time buyers
6
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate in respect of residential property where consideration over £1m
7
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.
- (3) But that amendment does not have effect in relation to any transaction—
- (a) effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or
- (b) effected in pursuance of a contract entered into before that date and not excluded by subsection (4).
- (4) A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—
- (a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,
- (b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
- (c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
Inheritance tax
Rate bands
8
- (1) The Table substituted in Schedule 1 to IHTA 1984 by section 155(1)(b) and (4) of FA 2006 (which provides for a rate of nil per cent on such portion of the value concerned as does not exceed £325,000 and a rate of 40 per cent on such portion as exceeds that amount) has effect in relation to chargeable transfers made on or after 6 April 2010.
- (2) Accordingly, omit—
- (a) in IHTA 1984, the Table substituted in Schedule 1 in relation to chargeable transfers made on or after that date (which provided for a rate of nil per cent on such portion of the value concerned as does not exceed £350,000 and a rate of 40 per cent on such portion as exceeds that amount), and
- (b) in FA 2007, section 4 (which substituted it).
- (3) Section 8 of IHTA 1984 (indexation) does not have effect by virtue of any difference between the retail prices index for the month of September in 2010, 2011, 2012 or 2013 and the previous September.
Alcohol and tobacco
Rates of alcoholic liquor duties
9
- (1) ALDA 1979 is amended as follows.
- (2) In section 5 (rate of duty on spirits), for “£22.64” substitute “ £23.80 ”.
- (3) In section 36(1AA)(a) (standard rate of duty on beer), for “£16.47” substitute “ £17.32 ”.
- (4) In section 62(1A) (rates of duty on cider)—
- (a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£207.20” substitute “ £217.83 ”,
- (b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£47.77” substitute “ £54.04 ”, and
- (c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£31.83” substitute “ £36.01 ”.
- (5) In section 62(1A) (as amended by subsection (4))—
- (a) in paragraph (b), for “£54.04” substitute “ £50.22 ”, and
- (b) in paragraph (c), for “£36.01” substitute “ £33.46 ”.
- (6) For the table in Schedule 1 substitute—
TABLE OF RATES OF DUTY ON WINE AND MADE-WINE
| Description of wine or made-wine | Rates of duty per hectolitre £ |
|---|---|
| Wine or made-wine of a strength not exceeding 4 per cent | 69.32 |
| Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent | 95.33 |
| Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling | 225.00 |
| Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent | 217.83 |
| Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent | 288.20 |
| Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent | 299.97 |
| Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine £ |
| --- | --- |
| Wine or made-wine of a strength exceeding 22 per cent | 23.80 |
.
- (7) The amendments made by subsections (2) to (4) and (6) are treated as having come into force on 29 March 2010.
- (8) The amendments made by subsection (5) come into force on 30 June 2010.
Rates of tobacco products duty
10
- (1) For the table in Schedule 1 to TPDA 1979 substitute—
| 1. Cigarettes | An amount equal to 24 per cent of the retail price plus £119.03 per thousand cigarettes |
|---|---|
| 2. Cigars | £180.28 per kilogram |
| 3. Hand-rolling tobacco | £129.59 per kilogram |
| 4. Other smoking tobacco and chewing tobacco | £79.26 per kilogram |
.
- (2) The amendment made by subsection (1) is treated as having come into force at 6 pm on 24 March 2010.
Vehicle excise duty
Rates for motorcycles
11
- (1) In paragraph 2(1) of Schedule 1 to VERA 1994 (annual rates of duty: motorcycles)—
- (a) in paragraph (c) (motorbicycle which has engine with cylinder capacity exceeding 400cc but not exceeding 600cc), for “£48” substitute “ £50 ”, and
- (b) in paragraph (d) (motorcycle not within any of paragraphs (a) to (c)), for “£66” substitute “ £70 ”.
- (2) The amendments made by subsection (1) have effect in relation to licences taken out on or after 1 April 2010.
Fuel duties
Fuel duties: rates and rebates from April 2010
12
- (1) HODA 1979 is amended as follows.
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol), for “£0.5619” substitute “ £0.5719 ”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3457” substitute “ £0.3835 ”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6591” substitute “ £0.6691 ”, and
- (d) in paragraph (c) (heavy oil), for “£0.5619” substitute “ £0.5719 ”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “shall be £0.3619 a litre” substitute “ is the same as that in the case of heavy oil ”.
- (4) In section 6AB (rate of duty on bioblend)—
- (a) in subsection (3), for the words after “is the” substitute “ same as that in the case of heavy oil. ”, and
- (b) omit subsections (4) and (5).
- (5) In section 6AD(3) (rate of duty on bioethanol), for “shall be £0.3619 a litre.” substitute “ is the same as that in the case of unleaded petrol. ”
- (6) In section 6AE (rate of duty on blends of bioethanol and hydrocarbon oil)—
- (a) in subsection (3), for the words after “bioethanol blend” substitute “ is the same as that in the case of unleaded petrol. ”, and
- (b) omit subsections (4) and (5).
- (7) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas), for “£0.2216” substitute “ £0.2360 ”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2767” substitute “ £0.3053 ”.
- (8) In section 11(1) (rebate on heavy oil)—
- (a) in paragraph (a) (fuel oil), for “£0.1037” substitute “ £0.1055 ”, and
- (b) in paragraph (b) (gas oil), for “£0.1080” substitute “ £0.1099 ”.
- (9) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1037” substitute “ £0.1055 ”.
- (10) In section 14A(2) (rebate on certain biodiesel), for “£0.1080” substitute “ £0.1099 ”.
- (11) The following are revoked—
- (a) the Hydrocarbon Oil Duties (Hydrogenation of Biomass) (Reliefs) Regulations 2006 (S.I. 2006/3426),
- (b) the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) (Amendment) Regulations 2007 (S.I. 2007/2406), and
- (c) regulation 11 of the Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (S.I. 2008/753).
- (12) The amendments made by this section are treated as having come into force on 1 April 2010.
Fuel duties: further changes in rates and rebates
13
- (1) HODA 1979 is amended as follows.
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol)—
- (i) on 1 October 2010, for “£0.5719” substitute “ £0.5819 ”, and
- (ii) on 1 January 2011, for “£0.5819” substitute “ £0.5895 ”,
- (b) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—
- (i) on 1 October 2010, for “£0.6691” substitute “ £0.6791 ”, and
- (ii) on 1 January 2011, for “£0.6791” substitute “ £0.6867 ”, and
- (c) in paragraph (c) (heavy oil)—
- (i) on 1 October 2010, for “£0.5719” substitute “ £0.5819 ”, and
- (ii) on 1 January 2011, for “£0.5819” substitute “ £0.5895 ”.
- (3) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas)—
- (i) on 1 October 2010, for “£0.2360” substitute “ £0.2505 ”, and
- (ii) on 1 January 2011, for “£0.2505” substitute “ £0.2615 ”, and
- (b) in paragraph (b) (other road fuel gas)—
- (i) on 1 October 2010, for “£0.3053” substitute “ £0.3195 ”, and
- (ii) on 1 January 2011, for “£0.3195” substitute “ £0.3304 ”.
- (4) In section 11(1) (rebate on heavy oil)—
- (a) in paragraph (a) (fuel oil)—
- (i) on 1 October 2010, for “£0.1055” substitute “ £0.1074 ”, and
- (ii) on 1 January 2011, for “£0.1074” substitute “ £0.1088 ”, and
- (b) in paragraph (b) (gas oil)—
- (i) on 1 October 2010, for “£0.1099” substitute “ £0.1118 ”, and
- (ii) on 1 January 2011, for “£0.1118” substitute “ £0.1133 ”.
- (5) In section 14(1) (rebate on light oil for use as furnace fuel)
- (a) on 1 October 2010, for “£0.1055” substitute “ £0.1074 ”, and
- (b) on 1 January 2011, for “£0.1074” substitute “ £0.1088 ”.
- (6) In section 14A(2) (rebate on certain biodiesel)—
- (a) on 1 October 2010, for “£0.1099” substitute “ £0.1118 ”, and
- (b) on 1 January 2011, for “£0.1118” substitute “ £0.1133 ”.
Other environmental taxes
Rates of air passenger duty
14
- (1) In section 30 of FA 1994 (air passenger duty: rates)—
- (a) in subsection (2) (journeys ending in UK or Part 1 territory), for “£11” substitute “ £12 ” and for “£22” substitute “ £24 ”,
- (b) in subsection (3) (journeys ending in Part 2 territory), for “£45” substitute “ £60 ” and for “£90” substitute “ £120 ”,
- (c) in subsection (4) (journeys ending in Part 3 territory), for “£50” substitute “ £75 ” and for “£100” substitute “ £150 ”, and
- (d) in subsection (4A) (other journeys), for “£55” substitute “ £85 ” and for “£110” substitute “ £170 ”.
- (2) The amendments made by subsection (1) have effect in relation to the carriage of passengers beginning on or after 1 November 2010.
Standard rate of landfill tax
15
- (1) In section 42(1) and (2) of FA 1996 (standard amount of landfill tax), for “£48” substitute “ £56 ”.
- (2) The amendments made by subsection (1) have effect in relation to disposals made (or treated as made) on or after 1 April 2011.
Rate of aggregates levy
16
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Rates of climate change levy
17
- (1) In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—
| Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply |
|---|---|
| Electricity | £0.00485 per kilowatt hour |
| Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00169 per kilowatt hour |
| Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.01083 per kilogram |
| Any other taxable commodity | £0.01321 per kilogram |
.
- (2) The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.
Climate change levy: reduced-rate supplies
18
- (1) In Schedule 6 to FA 2000 (climate change levy), in paragraph 42(1)(c) (reduced-rate supplies), for “20 per cent.” substitute “ 35 per cent. ”.
- (2) The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.
Gambling
Rate of bingo duty
19
- (1) In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 22 per cent of bingo promotion profits), for “22” substitute “ 20 ”.
- (2) The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 29 March 2010.
Rates of gaming duty
20
- (1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—
| Part of gross gaming yield | Rate |
|---|---|
| The first £1,975,000 | 15 per cent |
| The next £1,361,500 | 20 per cent |
| The next £2,385,000 | 30 per cent |
| The next £5,033,500 | 40 per cent |
| The remainder | 50 per cent |
.
- (2) The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2010.
Amusement machine licence duty
21
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